Land Remediation Relief (LRR) was first introduced to the UK in 2001 and amended in 2009. It is one of the most generous tax reliefs available for property investors and developers.

Land remediation is when land is restored to its natural state after discovering contamination in the soil or water. Any money spent on cleaning brownfield sites and buildings can be claimed through LRR, with a tax deduction of up to 150% available.

Commercial property owners, investors, and developers subject to Corporation Tax can claim tax relief for the decontamination of land and buildings. However, the land must have been purchased from a third party and been contaminated before the company bought it.

Capital Spend – These are costs by a landlord or an occupier investing in improving their property. Companies can receive up to 150% relief under capital spend.

Revenue Spend – these are costs incurred by property developers or dealers. These companies can receive up to 50% relief.

Loss-making companies can claim a tax credit (cash in hand), and this can be up to 24%.

Costs incurred during the remediation of contaminated land, asbestos removal from buildings, breaking-out buried structures, and treating harmful organisms and natural contaminants such as Japanese Knotweed, Radon, and Arsenic can all qualify for LRR.